Gateshead ethical school uniform supplier secures five-figure investment to expand business

A Gateshead ethical school uniform supplier has secured a five-figure investment to expand its business and create new jobs.

Etika Clothing supplies ethically sourced uniforms to the UK primary school market after developing a unique ethical manufacturing partnership between the UK and India which delivers full transparency and ownership of the supply chain.

The Etika management team worked with regional fund management firm NEL Fund Managers to secure the £20,000 Small Loan Fund investment, which will be used to enhance its business development activity and bring in skilled personnel to service growing demand.

Around half a dozen new jobs are expected to be created as the business expands, with the aim of reaching an annual turnover of £1m by 2025 and establishing the firm as a truly national brand.

It works closely with several charities in India to provide employment opportunities for vulnerable women who are survivors of domestic abuse, and also runs “Wear the Change” workshops for Year Five and Six children to help them gain a better understanding of injustices within the garment manufacturing industry

Sean Murphy, managing director at Etika Clothing, said: “Our core belief is that every child in the UK should have the opportunity to wear an ethical school uniform and our aim is to make this a possibility for as many pupils as we can.

“We’re confident that the quality of the products and service we offer will enable us to double the number of schools with which we’re working over the next academic year and to then reach three figures during the following 12 months.

“NEL offered the right financial option for our particular needs and the investment team worked closely with us to enable us to complete what was a fairly straightforward application process.”

Jonathan Armitage, investment executive at NEL Fund Managers, adds: “Etika Clothing is taking a far-sighted approach to supplying a market where the importance of its commitment to ethical practices and sustainability are increasingly widely recognised by schools, parents and children.”

Etika Clothing is part of the North East LEP’s High Potential Start-Up programme and is supported by Scaleup North East partner Craig Huntingdon at RTC North.